Canadian Personal Finance Blog

Scotiabank takes a Boot to the Head

Thanks to their dealings with Lehman Brothers Scotiabank is going to take a $595 million hit to their bottom line:

“Both the equity and fixed-income markets have experienced significant declines in value and extreme levels of volatility over the last several weeks, exacerbated by the Lehman bankruptcy,” stated Rick Waugh, Scotiabank president and chief executive.\

I wouldn’t call that a “hit”, that is more like a boot to the head (to quote the Frantics).

In case you didn’t know what I meant about the boot to the head reference, and figured I was only putting stock charts up these days. For you I leave you this boot to the head.

“Rogue” Trader at BMO

Bank of Montreal took a boot to the head with the charging of former Lead Natural Gas Trader David Lee, who has plead guilty to “…inflating the value of his portfolio and conspiring with others to deceive the bank…”, ouch. Makes you wonder how prices of commodities are set after reading:

Separately, the U.S. Securities and Exchange Commission and the CFTC filed civil charges against Lee and several other traders he is accused of conspiring with between 2003 and 2007 to fraudulently overvalue a commodity derivatives trading portfolio at Bank of Montreal.

Due to this BMO had to take a 1st quarter 2007 write down of almost C$237 million against it’s income. BMO seems to have taken a boot to the head as well?

Pay Day Loans Boot to the Head!

A while back I reprised my posting Pay Day Loans No No No! but I continue to get inquiries about advertising on this site directly by Payday Loan firms. Now, I must put the disclaimer that one of my “group” advertisers has sold space on my site to a Pay Day Loan site, which I am displeased about and will attempt to remove them as soon as I can. 

Do not mistake my humor, or frivolity at times about this subject as me being flippant, or not caring, as I think this “financial service” is evil. The victims of these “services” are those who can afford to deal with them the least, and I am sure during this ‘credit crunch’ Payday Loan Companies will jack up their “fees” even more than they currently do. I would urge my readers to contact their MP’s and MPP’s to have this industry more closely regulated. 

Oh and a boot to the head for all of those Pay Day Loan companies too!

Carnivals

• The Money Hawk hosted Carnival of Money Hawks #1: Links for Saving, Investing, and Spending Wisely where my article Debt is like Fat was added.

This week in the finance blogs we not only got to talk more about the Great Financial Apocalypse of ‘08 we also got to write about a bunch of other interesting financial stuff.

Ghosts, ghouls and Witches are about in the economy this Halowe’en, and what is in store for our retirement funds now? Who knows? Pirates maybe? Some of the mutual fund and financial folk out there certainly act like the Privateers of old, all they need is the Jolly Roger flying over their offices.

Shiver Me Timbers and Hand over your Mutual Funds!

Random Thoughts for A Halowe’en Pirate Style

• All About Nortel is wondering where all the media coverage is for the denouement of Nortel? I have no idea, maybe complete disinterest says loudly that most Canadians, just don’t care any more about this former High Tech darling. Make them walk the plank!
• Michael James on Money came up with his own Mutual Fund Disclosure rules, to help investors have better clarity of where their money goes, I suspect they will not be adopted in the near future. Shiver me timbers!
• Preet at Where Does All My Go published a list of famous (infamous?) investing quotes. I always enjoy, “Buy low, sell high, it’s that simple”, hoist up the Jolly Roger!!!
• Canadian Tax Resource asks one of my favorite questions during these troubled times, “Should I Invest or Pay Off Personal Debt?“.  Neither a borrower nor a lender be! (wait a minute that’s Shakespeare not Piratey).
• The Canadian Capitalist asked, is Thrift Making a Comeback? I don’t think it was ever out of style to keep your money in your pocket, but maybe I am just an Old Salty Dog.
• One Caveman’s Financial journey laments I could Be Rich If I didn’t Have This Debt , it’s kind of like me saying I’d be in great shape if I didn’t have this spare tire around my waste. Remember, Debt Men tell no tales!! (what a great pun).
• Alphablogs mentioned my Twenty Years in One Line post in their Canada 9-5 in October post. 
• Money Smart Life has 5 Tips For Reducing Your Moving Expenses, which frankly those of us who are over 40 will ignore. Rather swallow a gallon of grog before that!

I have read that the Queen is recycling outfits to save money, however this it getting very, very serious.

I did borrow this one from Nancy Zimmerman, so drop by her site and enjoy her writings on Personal Finance as well.

I would guess the Queen has quite the expense sheet just heating Buckingham Palace, maybe she can get some of her deadbeat children to work at McD’s as well?

This Whole Credit Crunch is Getting Very Serious

Thankfully the markets (in Canada at least) are closed and we can all sit back and enjoy a lot of turkey and family and be thankful for all that we have in our over-abundant lives. 

For some however, Thanksgiving is a terrible time, and that is for the Meleagris gallopavo, or the Wild Turkey. Constantly hiding and ducking from now until January 2nd, think of these poor creatures are you scarf down their kins legs and breasts!

Happy Thanksgiving?

Financial Apocalypse Humor

In case you really need a dose of Financial Information, watch this helpful video on how the markets really work in these times of trouble. Go get some coffee, and come back and enjoy this 8 minutes of clarity.